Online gambling is on the rise. Panel says we need to act now

The online gambling industry has experienced unprecedented growth in recent years, transforming from a niche market into a global powerhouse. As of April 2024, the market size of the global casinos and online gambling industry reached $305.8 billion, with approximately two million workers employed at around 5,000 establishments worldwide.

This surge is not just a testament to technological advancements but also a reflection of changing societal attitudes towards gambling.

In the United States, the online gambling market was valued at $11.68 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.0% from 2024 to 2030.

This growth is fueled by increased internet penetration, the proliferation of smartphones, and the legalization of online gambling in various states. However, this rapid expansion has raised concerns among experts and policymakers about the potential societal impacts, leading to calls for immediate action to regulate the industry effectively.

The Meteoric Rise of Online Gambling

The convenience of online platforms has made gambling more accessible than ever before. Players can now place bets from the comfort of their homes or on the go, using mobile devices. This ease of access has contributed significantly to the industry’s growth. In 2024, the global online gambling market size was estimated at $93.26 billion and is projected to reach $153.21 billion by 2029, growing at a CAGR of 10.44% during the forecast period.

Sports betting, in particular, has seen substantial growth. Following the 2018 Supreme Court decision that struck down the federal ban on sports betting, numerous states have legalized the practice, leading to a boom in both retail and online sports betting platforms. For instance, Maryland launched retail sports betting in December 2021 and online betting in November 2022, with multiple options now available for placing bets.

The Societal Implications

While the economic benefits of a thriving online gambling industry are evident, there are growing concerns about its societal impacts. The National Health Service (NHS) in the UK has reported a sharp rise in referrals to gambling clinics, prompting new guidance for General Practitioners (GPs) to routinely ask patients about their gambling habits. Estimates indicate that over one million people in Britain have gambling problems, with a substantial proportion considering suicide.

In the United States, experts have drawn parallels between the gambling and tobacco industries, highlighting the addictive nature of gambling and its potential to cause financial instability, bankruptcy, and increased rates of domestic violence. Richard Daynard, a law professor known for his role in legal battles against U.S. tobacco companies, has now set his sights on the sports betting industry, aiming to curb its negative impacts through legislation and litigation.

The Call for Regulation

In response to these concerns, various organizations and policymakers are advocating for stricter regulations to ensure responsible gambling practices. The Betting and Gaming Council (BGC) has launched an International Best Practice Guide aimed at global policymakers, offering crucial policy insights for regulating the online gambling sector. Developed in collaboration with consulting firm Alvarez and Marsal, the guide presents a comprehensive comparison of regulatory strategies across various markets, providing a valuable evidence base for analysis.

In the United States, the National Council of Legislators from Gaming States (NCLGS) is developing a model bill to guide lawmakers across the country in implementing online gambling laws starting in 2025. This initiative aims to provide a structured blueprint that addresses key regulatory concerns, including responsible gambling measures, consumer protection, and the prevention of illegal gambling activities.

Responsible Gambling Measures

Implementing responsible gambling measures is crucial to mitigate the potential harms associated with online gambling. The National Council on Problem Gambling (NCPG) has established Internet Responsible Gambling Standards (IRGS) to guide operators and regulators in creating safe online gambling environments. These standards emphasize the importance of comprehensive public health strategies, including self-exclusion programs, deposit limits, and accessible support resources for individuals experiencing gambling-related harm.

Furthermore, the American Gaming Association (AGA) has compiled a Responsible Gaming Statutes and Regulations Guide, providing a centralized collection of statutes and regulations addressing responsible gaming in the 34 states and the District of Columbia with commercial casinos, sports betting, or internet gaming as of August 31, 2022.

The Role of Technology

Technology plays a dual role in the online gambling industry. While it has facilitated the industry’s rapid growth, it also offers tools to promote responsible gambling. Operators can utilize behavioral analytics to detect risky gambling patterns and implement preventive measures. Features such as time-tracking, deposit limits, and self-exclusion options empower players to manage their gambling activities effectively. Additionally, platforms are encouraged to display responsible gambling messages and helpline contacts prominently to provide immediate support to those in need.

The Path Forward

As the online gambling industry continues to expand, it is imperative to balance economic benefits with societal well-being. This requires collaborative efforts from operators, regulators, policymakers, and public health organizations to implement effective regulations and promote responsible gambling practices. By doing so, we can harness the advantages of technological advancements in the gambling sector while safeguarding individuals and communities from potential harms.

Conclusion

The rise of online gambling presents both opportunities and challenges. While it contributes significantly to economic growth, it also poses risks to societal health. Immediate action is necessary to implement robust regulatory frameworks and promote responsible gambling to ensure the industry’s sustainable and ethical development.